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MALVERN, PA-Liberty Property Trust's net income for this year's third quarter dropped to $37.2 million, down from $46.9 million for the same quarter a year ago. Revenue rose to $177.8 million, up 14% from $155.7 million, and funds from operations grew to $76.4 million compared with $75.1 million in third quarter 2006.

The locally based REIT has nearly completed a three-year repositioning of its portfolio, said Bill Hankowsky, CEO, during a conference call. As a result, it has exited the Detroit market while entering Phoenix and Chicago. Following the third quarter, on Oct. 4, it acquired Republic Property Trust and almost simultaneously formed a joint venture with the New York State Common Retirement Fund, in which the latter assumed 75% of Republic's assets. The JV plans to invest up to $2 billion in the Washington, DC/Virginia markets.

As a consequence of all of these moves, Hankowsky said he expects lower sales activity in 2008, "since we've completed the bulk of our strategy," and acquisitions will also be lower. That is because the company will focus on development in the newly entered areas.